Vadian Bank AG is the Second Swiss Bank to Reach a Deal under US Tax Program

Vadian Bank AG is the Second Swiss Bank to Reach a Deal under US Tax Program

The Department of Justice (DoJ) announced that Vadian Bank AG, a small bank which has one office in St. Gallen, Switzerland, and 26 employee, reached a resolution under the US Tax Program.

According to the terms of the non-prosecution agreement (NPA), Vadian will pay a $4.253m penalty, demonstrate that it put in controls to stop misconduct in undeclared US accounts and cooperate in related criminal or civil proceedings.

After August 2008 when it became public that UBS AG was the target of a criminal investigation over facilitating tax evasion, Vadian attracted cross-border private banking business and increased its US-related accounts from 2 to more than 70, with $76m in assets under management.

Vadian Bank AG became the second Swiss bank to reach a deal under the US Tax Program. BSI was the first to reach a settlement under the Program in March.

Vadian Bank AG was bought in August 2014 by the St.Galler Kantonalbank AG.